Warranties
In simplest terms, a WARRANTY (also called a guarantee) is an agreement between a
seller and a buyer to ensure that a product will work properly. Warranties promise that
a product will perform properly; when a product fails to perform, it will be replaced or
repaired, or the consumer will be given a refund or a credit toward another product.
While the concept is simple, the actual application of a warranty can be quite complex. 1
How do you know when extended warranties are unnecessary and which warranties
provide real value? It is important for consumers to read and understand the terms and
conditions offered at the point of sale.
Extended Warranties
Optional extended warranties may be purchased along with the sale of the covered product.
Typically, the term of these agreements provide assurances that any required service and
parts will be provided in the event of a breakdown or malfunction of the covered product.
The majority of extended warranty agreements available for HVAC equipment, such as
those B&W provides through American Standard, require periodic inspection or
preventative maintenance in order to maintain the warranty. (See the preventative
maintenance schedule toward the end of this article)
As it applies to American Standard equipment…
The dealer purchases a manufacturer’s extended warranty directly from the
manufacturer. It is specific to the customer and the equipment. The dealer then
submits the customer’s information along with the model and serial number of the
equipment. American Standard then mails a copy of the warranty to the homeowner.
American Standard recommends all maintenance and service work be performed by a
professional air conditioning and heating dealer that holds the appropriate credentials
to install and service air conditioning and heating equipment.
What you need to know…
Some companies do not actually purchase the extended warranty from the
manufacturer.
They intend to cover the parts and labor costs themselves if a problem occurs.
Here is the problem. If the company is sold or goes out of business the homeowner has
no extended warranty. If the company is covering the cost themselves, they may be
inclined to determine that a certain repair is not covered. Make sure they intend to and
actually do purchase the manufacturer’s extended warranty. If they do, you will receive
documentation from the manufacturer. This will confirm your extended warranty;
enabling you to transfer it to a new homeowner or carry service with a different dealer.
If a manufacturer does not offer extended parts and labor warranty, it is because they
know they will lose money. To offer 5 and especially 10 year extended parts and labor
warranties, the manufacturer has to be confident in the quality of their equipment.
Here are some of the variations we have found during the 50 years we have been in
business.
 As indicated above companies tell the customer they are providing extended
warranty but do not purchase it from the manufacturer.
 Some companies offer the basic manufacturer warranty and an in-house 2-year
labor warranty. A 2-year labor warranty is required by law in the state of Indiana.
It should not be sold as an added benefit or feature.
Third Party Warranties
There are third party companies that will sell warranties on just about anything.
Through the years we have tried numerous ones; they all went out of business.
It is our recommendation not to purchase any third party warranties.
A third party warranty is not the same as a home warranty. There is much more risk
involved. They are often an out-of-state company. Third party warranties are often
non-transferrable. Not to mention there are a large number of scam warranty
companies out there that sell worthless contracts.
If you buy from a third party company, and something goes wrong, you often find the
third party reluctant to fulfill the warranty based on some loophole or some fine print
detail they cite in the contract to deny coverage.
Home warranties
There are basically 2 types we have encountered. The type that comes with a home
purchase and the type offered by the utility companies.
Home warranties that come with purchase of a home…
 We have found these companies excel at preventing you from using them.
 They have numerous pre-requisites
 They pay so little, they cannot attract reputable high quality companies with
insurance and licenses. Is that who you want to work in your home?
 The claims process is designed to make the homeowner give up.
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If you pay next to nothing for the warranty, don’t expect to get much in
return.
Document everything; Know the rules and procedures before you have a
claim.
Read the fine print.
Home warranties offered through the utility companies…
 We have found these companies to be much easier to deal with. They
pay well and quickly to the contractor. Quality contractors are willing to
work for them.
 Be sure to know what is covered; they have different plans available.
Points To Remember
2
Whether full or limited, each warranty must provide the following information in
plain language:
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What the warranty does and does not cover;
A step-by-step procedure the consumer must follow to obtain services;
A description of what repairs or replacements will be made if the product is
faulty; and
A description of what expenses the consumer, and the manufacturer, will
pay on a faulty product.
Read a warranty carefully to find out what is, and is not, covered.
Comparison shop for warranties as you would for products because warranties
vary widely in what they cover. To compare warranties, ask the following
questions:
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How long does the warranty last?
Is the warranty full or limited?
What parts, labor, or potential problems are expressly excluded? Is any part
or problem not mentioned at all?
What will the manufacturer do if the product has a defect? What are your
responsibilities? Is there a toll-free number for service and/or a list of local
repair shops?
Is there a parts manual for do-it-yourself repairs and are parts available
locally?
Warranty service requirements are important.
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Does the product have to be packaged in its original materials?
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Is there a local repair shop? If not, where will the product have to be
shipped?
How long will the repair servicing take?
Warranties may not be transferable to other owners, so make sure you know who
is covered. (For example, if you want to sell your lawn mower that is still covered
under its manufacturer’s warranty, the warranty would extend to the next owner
only if allowed by the warranty.)
Preventing Problems
2
To minimize the chance of a problem with your warranty, take these precautions:
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Consider the reputation of the company offering the warranty. If you are not
familiar with the company, ask your local or state consumer protection office
or Better Business Bureau if they have any complaints against the company.
A warranty is only as good as the company that offers it.
Before you buy, read the warranty. See exactly what protection the warranty
gives you.
Save the sales slip and file it with your warranty. You may need it later to
document the date of your purchase or, in the case of a warranty limited to
the first purchaser, that you were the original buyer.
Perform any maintenance or inspections required by the warranty.
Use the product according to the manufacturer's instructions. Abuse or
misuse of the product may cancel your warranty coverage
Questions to keep in mind when comparing warranties
2
WHAT PARTS AND REPAIR PROBLEMS ARE COVERED BY THE WARRANTY?
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Check to see if any parts of the product or types of repair problems are
excluded from coverage. Are any expenses excluded from coverage?
Some warranties require you to pay for labor charges. How long does the
warranty last? Check the warranty to see when it expires.
DOES THE WARRANTY COVER "CONSEQUENTIAL DAMAGES"?
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Many warranties do not cover consequential damages. This means that
the company will not pay for any damage the product caused, or your
time and expense in getting the damage repaired. For example, if your
freezer breaks and the food spoils, the company will not pay for the food
you lost.
ARE THERE ANY CONDITIONS OR LIMITATIONS ON THE WARRANTY?
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Some warranties only provide coverage if you maintain or use the
product as directed. For example, a warranty may cover only personal
uses — as opposed to business uses — of the product. Make sure the
warranty will meet your needs.
WHO DO YOU CONTACT TO OBTAIN WARRANTY SERVICE?
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It may be the seller or the manufacturer who provides you with service.
WHAT WILL YOU HAVE TO DO TO GET REPAIRS?
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Look for conditions that could prove expensive, such as a requirement
that you ship a heavy object to a factory for service.
WHAT WILL THE COMPANY DO IF THE PRODUCT FAILS?
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Find out if the company will repair it, replace it, or return your money.
Preventative Maintenance Checklist
(American Standard)
Many dealers provide priority service for their customers who have an annual
maintenance or service agreement. Bi-annual preventative maintenance will ensure that
your system runs as efficiently as possible. The dealer will perform the following tasks,
depending on the unit:
Outdoor Units
 Inspect unit for proper refrigerant level and adjust if necessary
 Clean dirt, leaves and debris from inside cabinet
 Inspect base pan for restricted drain openings—remove obstructions as
necessary
 Inspect coil and cabinet—clean as needed
 Inspect fan motor and fan blades for wear and damage—on older models
lubricate as needed
 Inspect control box, associated controls/accessories, wiring and connections.
Controls may include contactors, relays, circuit boards, capacitors, sump heat
and other accessories.
 All control box and electrical parts should be checked for wear or damage.
 Inspect compressor and associated tubing for damage
Indoor Units
 Inspect and clean blower assembly (includes blower housing, blower wheel and
motor)
 On older models, lubricate motor and inspect and replace fan belt if needed
 Check combustion blower housing for lint and debris and clean as necessary
 Inspect evaporator coil, drain pan and condensate drain lines. Clean as needed
 Inspect for gas leaks in gas furnaces
 Inspect burner assembly—clean and adjust as needed
 Inspect ignition system and safety controls—clean and adjust as needed
 Inspect heat exchanger or heating elements
 Inspect flue system—check for proper attachment to the furnace, any dislocated
sections, and for signs of corrosion. Replace if necessary.
 Inspect control box, associated controls, wiring and connections
 Clean or replace air filters
 Inspect conditioned airflow system (ductwork)—check for leaks
While Your System Is Operating
 Monitor system starting characteristics and capabilities
 Listen for abnormal noise
 Search for source of unusual odors
 Monitor air conditioning and heat pump systems for correct refrigerant charge
 Measure outdoor dry bulb temperature
 Measure indoor dry and wet bulb temperature
 Measure high and low side system pressures
 Monitor gas furnace for correct line and manifold gas pressure—make
adjustments as needed
 Measure temperature rise and adjust airflow as needed
 Check vent system for proper operation
 Monitor system for correct line and load volts/amps
 Monitor system operation per manufacturer's specifications
 Provide system operation report and recommend repairs or replacement as
necessary
1
“Consumer Issues”, From Encyclopedia of Everyday Law, ©2003 Gale Cengage,
Retrieved November 12th, 2012 from http://www.enotes.com/consumer-issuesreference/warranties
2
Author Unkown, “Warranties”, From Indiana Dept of Financial Institutions, Online
Publication. Retrieved November 12th, 2012, from http://www.in.gov/dfi/2656.htm.